Aditya Birla Fashion and Retail Ltd. will launch its rights issue on July 8 to raise Rs 995 crore to pare debt.
The owner of brands including Louis Philippe, Van Heusen and lifestyle retailer Pantaloons will issue shares to existing shareholders at Rs 110 apiece, according to its filing. That's a 17.7% discount to Monday's closing price. The issue closes on July 22.
The issue comprises partly paid shares. Investors will have to pay 50% at the time of application, 25% in January 2021 and 25% in July 2021. Each shareholder is entitled to 9 new shares for every 77 held, the filing said.
The main objectives of the fundraising, the company said, are to cut leverage, strengthen the balance sheet and for general corporate purposes, including working capital.
The entitlement or the right to acquire shares will be listed in the stock exchange. Upon completion of the entitlement, the partly paid shares will be available for trading on the exchanges.
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